What is the core spreads + commission pricing model?

For clients with spread-sensitive trading strategies, we offer a core spreads + commission pricing model. Developed for high-volume traders, this model utilizes reduced spreads to facilitate more precise entry and exit points. The fixed commission structure provides transparent transaction costs, allowing for more efficient execution during periods of high market liquidity.

To enroll in the core spreads + commission pricing model, you must meet the following requirements:

With the core spreads + commission pricing model, your total trading cost is the sum of the applicable core spread and a fixed commission charge per trading volume.

You can access spreads as low as 0.1 on selected major currency pairs, including EUR/USD, GBP/USD and USD/JPY.

Core spreads fluctuate with market liquidity. During periods of lower liquidity, spreads may be higher than 0.1.

A commission of 40 USD is applied for every 1 million USD notional trading volume to each "leg" of a trade at opening, i.e., you will be charged both legs upfront when you open the position.

If your account is denominated in a currency other than USD, the commission will be charged in your account’s home currency based on the current exchange rate.

In this hypothetical example, you open a trade for 100,000 units of EUR/USD while the exchange rate is 1.17728 and spreads are at 0.1 pips.

SpreadClosed The difference between the bid and the ask price. cost:

In EUR/USD, 1 pip for a 100,000 unit trade is worth 10.00 USD. If the spread is 0.1 pips, your cost is: 0.1 pips x 10.00 USD/pip = 1.00 USD

Commission cost:

The notional value of the trade is 117,728 USD. When you open the trade, it incurs a commission of 4.71 USD (117,728 USD / 1,000,000 x 40 USD) per "leg". Since a commission is charged on both legs when opening a trade, this results in a total commission cost of 9.42 USD for the trade upfront.

Total cost:

Spread cost (1.00 USD) + commission cost (9.42 USD) = 10.42 USD

To ensure you are trading instruments with the core spreads + commission pricing model applied on MT5, check your MT5 account’s Fee Group in the OANDA Portal. The name for the core spreads + commission pricing model must be CORE PRICING MT5.